This bill aims to revise unfair trade practices and enhance consumer protections in health care contracts by imposing limitations on certain anticompetitive contract terms. It introduces definitions for various clauses such as "all-or-nothing," "anti-steering," "gag clauses," and "most-favored-nations clauses," which are deemed anticompetitive. The bill prohibits health carriers, health care providers, and health plan administrators from including these clauses in their contracts, with specific exceptions outlined for certain situations. Additionally, it establishes a process for parties to apply for waivers from these prohibitions, which the Department of Justice can approve if it determines that the contract would enhance consumer welfare without harming competition.

The bill also grants enforcement authority to the Department of Justice and the Insurance Commissioner, allowing them to investigate violations and impose penalties. It provides a private right of action for individuals who suffer losses due to violations of the new provisions. Furthermore, it amends existing law regarding contracts that restrict the practice of health care providers, updating the list of applicable professionals. The bill is set to take effect for contracts issued or renewed on or after October 1, 2025, and includes provisions for rulemaking and notification to tribal governments.

Statutes affected:
LC Text: 28-2-724